GDG confirms Lonsec acquisition 

InvestorDaily

In an ASX listing on Monday, GDG confirmed last week’s media reports, announcing it has entered into a binding agreement to acquire the remaining shares in Lonsec that it does not yet own. The acquisition will be funded by a conditional placement of $49.2 million to Lonsec shareholders and an equity raising of approximately $155.4 million. The firm said that following its “highly successful” investment in Lonsec in 2020, a move to 100 per cent ownership provides an opportunity for GDG to take full control of a familiar asset with further expected significant growth upside.

Commenting on the transaction, Generation Life chief executive officer Grant Hackett said, “I am excited to announce today that Generation Development Group is embarking on a significant step in progressing its growth strategy through the acquisition of the residual equity interests in Lonsec”. “This acquisition of Lonsec will provide GDG with full ownership of a highly strategic asset in an attractive segment of the wealth management sector. We believe that Lonsec is well positioned for future growth supported by strong industry and regulatory tailwinds and is expected to provide access to resilient recurring revenue streams from its core research offering. The Lonsec acquisition is expected to be immediately accretive to our earnings.

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